AirAsia to Partner Tata for India Airline

By

Jason Ng And

Santanu Choudhury

Updated Feb. 20, 2013 9:04 a.m. ET

KUALA LUMPUR—More than 80 years after former Tata Group head J.R.D. Tata piloted the first scheduled flight in India, the conglomerate is seeking to re-enter the sector by investing in a low-cost airline.

AirAsia Bhd, the largest discount carrier in Southeast Asia by fleet size, said Wednesday it has signed an initial agreement with Tata Sons Ltd. and another Indian investor, Arun Bhatia of Telestra Tradeplace Pvt. Ltd., to establish...